Yarralumla Nursery retail business to be sold off

The retail business of Canberra's historic Yarralumla Nursery is to be sold off to the private sector.

It is part of ACT Government's plans to try to make the nearly 100-year-old nursery financially viable.

The struggling nursery lost $1.2 million in 2012-2013, and is expected to lose $500,000 this financial year.

Territory and Municipal Services Minister Shane Rattenbury says the Garden Centre will be be offered for public sale as an ongoing business.

He says the nursery will maintain its role as a wholesale business and there will be no full-time job losses.

"The Garden Centre has been part of the nursery since 1994," he said.

"The drought of the last decade, along with competitive pressures, mean the nursery needs to reposition itself to ensure it continues to play an important role in the history of the ACT.

"The nursery will return to its original focus of being a wholesale nursery which provides cool-climate plants for Canberra's public parks and streets as well as to landscaping contractors and retail outlets in the surrounding region."

The nursery's tree farm at Pialligo will close on August 31 to make way for runway extensions at the Canberra Airport.

"There will be no loss of permanent staff in the changes and the disability employment program through Koomarri and vocational program with Black Mountain School will continue without impact," Mr Rattenbury said.

"The Heritage Nursery next door, which is privately run, will not be impacted."

The free plant issue scheme, which has been running since 1930, will also continue with the same conditions.

Mr Rattenbury says the changes will reposition the nursery so it can serve the Canberra community for another 100 years.

"The heritage-listed Yarralumla Nursery holds a special place in Canberra's history," said Mr Rattenbury.

"It was established in 1914 and has played a crucial role in the development of Canberra by growing the trees seen in our streets, parks and gardens, as well as the National Arboretum."

He says activities are planned to mark the nursery's centenary next year.